The Biggest Bank in China, the China Construction Bank is planning to raise up to $3 billion from the sale of bonds that individuals and institutions can trade-in by using Bitcoin and the US Dollar so let’s find out more in today’s latest Bitcoin news.
The move came amidst the growing interest in the Bitcoin space by seasoned investors and tech entrepreneurs like hedge fund manager Paul Tudor Jones and Michael Saylor, the CEO of Microstrategy over the past few months as the global certainty and inflation seem imminent. CCB which also happens to be the biggest bank in China is selling cheap digital bonds that buyers can invest about $100 in. The security will roll over every three months and will pay the annualized interest of Libor with 50 basis points or about 0.75% according to the reports.
SCMP reports China Construction Bank will sell US$3 billion worth of debt via Bitcoin, to be traded on Malaysian exchange.https://t.co/cAgbCFcFKM
— Bitcoin Association 香港比特幣協會 (@bitcoinorghk) November 11, 2020
For legality purposes, the bonds will be issued and arranged in Labuan county, in Malaysia. The small town there serves as a tax haven for all southeast Asian businesses thanks to its favorable regulations and policies. The digital bonds will be listed on the Fusang Exchange which facilitates the trading of crypto assets as well. it also accepts BTC as a form of payment for all purchases which are converted to the US dollar. Felix Feng Qi, the chief executive of China Construction Bank of the onshore Malaysia business and principal officer of its offshore Labuan branch said that the bond is “the first publicly listed debt security on a blockchain.” Henry Chong, the CEO of Fusang noted:
“The bond is essentially like a three-month fixed deposit product that pays holders much more than most U.S. dollar bank-deposit rates. The securities can be purchased by investors all over the world, with the exception of tax residents of the U.S. and China, and people and entities in Iran and North Korea.”
Steven Wong, the chief operating and financial strategist for CCB Malaysia added that the business was not breaching the laws by taking BTC payments:
“We are taking bank deposits, which is our core business.”
Wong continued that the bank considered the issuance of the bonds as both a pilot project and an innovative offering. He also cautioned against Rumors:
“The bank is not dealing in Bitcoin or cryptocurrencies.”
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